After renewing his love of the sea while living on the Greek island of Santorini, hotelier Costis Psychas finds an even more secluded spot to create his ultimate water world

Living Area

Living Area

Costis Psychas was diving off the coast of Therassia, an islet in Greece's Aegean Sea, when he first spotted his future dream home. Nestled in a cove at the base of a ruddy cliff, the building had been abandoned for decades and was not much more than a pile of rubble. "I almost didn't see it at first because it was built of red volcanic stones collected from the mountain, so it blends into its environment," he says. What's more, much of the structure was under water. "Which," says this passionate sailor, "is what makes it so special."

The low tables in the living area are family heirlooms that were originally used for making flatbread; the wool pillows and cotton rugs were handwoven in Greece, and the handmade floors are a mix of white cement and sand.

Sundeck

Sundeck

The year was 1984. Psychas had recently moved from Athens to the Greek island of Santorini to help his mother with the renovation of a group of guest houses. His family has roots in the Cyclades: His paternal great-grandfather was a sea captain who ferried one of Santorini's native wines, vinsanto, over the Black Sea to Odessa in the Ukraine, where his father was born. The family later moved to Athens, though his father fantasized for years about relocating to Santorini. "He was just in love with the place," Psychas says.

A sundeck overlooking the Aegean Sea at Costis Psychas's home on the Greek island of Therassia; the ladder leads to a circular room above.